The present invention generally relates to reward selection and redemption in a loyalty program. More specifically, the present invention relates to a method and system for facilitating reward selection and redemption in a loyalty program.
Under conventional practice, participants in a smartcard- or electronic-based loyalty program generally receive their rewards automatically without being given any opportunity to decide whether they wish to receive or redeem such rewards. Typically, once a participant's reward level has reached a specific threshold that entitles the participant to receive his/her reward, the reward is automatically given out to the participant. The participant is not offered a chance to choose whether to redeem or defer the reward. Due to practical constraints, automatic reward redemption may be desirable in certain situations, such as, a situation where the reward to be given is relatively small. In other situations, however, automatic reward redemption may lead to customer dissatisfaction. For example, if a participant is entitled to receive a reward in the form of a substantial discount for a future purchase and this discount is automatically applied without first consulting the participant, the participant may feel dissatisfied by the missed opportunity to fully take advantage of the reward which s/he has earned. Such dissatisfaction may eventually impact participation in a loyalty program. As more and more participants become unhappy with the way rewards are redeemed, these participants are less likely to continue to participate in the loyalty program which, in turn, leads to loss of business.
Hence, it would be desirable to provide a method and system that is capable of facilitating reward selection and redemption in a loyalty program to improve customer satisfaction.